Throughout their lives, many adults have fallen into debt, late rent payments, credit card debt, car payments, or mortgage debt. To prevent this, you will have to teach children the basic rules of managing finances, saving, and investing in different types of industries.
That is why we are seeing searches for “teen finance apps”, “kids debit card”, and other similar terms skyrocketing every single day. This means that more and more parents are looking for new ways to teach their kids how to manage money.
Experts advise that it is better to teach children financial literacy as early as possible to create a habit from an early age and avoid debt and stress later in adult life. Do not underestimate children and think that you will disturb their carefree childhood by teaching them about finances. On the contrary, you are creating the right and qualitative foundations for which they will be thankful in the future.
There are several ways to teach children everything about finances, and as for everyday activities, we will single out some that have proven to be excellent options for many children and parents around the world.
Explain Money To Them
Before you start any plans to introduce them to the financial world, you will have to explain to them the origin of the money. That money is earned through hard work and it doesn’t come from magic machines (ATMs).
Give Them Children’s Credit Card
One of the best ways to teach finance, saving, investing, donating, and rational spending of money is a children’s credit card. Apart from the fact that they have almost all the same options as adults with their cards, they cannot go into the red and parents fully supervise the transactions.
What is great for children are the tables of duties and tasks which children must complete within the time limit set by the parents. Depending on their commitment and performance of tasks, children will receive an increase or decrease in allowance money.
One of the options also offers the possibility of earning and direct payment of money by a third party with the corresponding QR code by BusyPay.
Children have various options with these kinds of cards compared to the piggy banks that the older generations had, this is much more advanced, innovative, and easier for children.
Let Them Earn Their Own Pocket Money
Many children think that they should get everything they want, but this can create certain problems for them during their adult life. Therefore, you, as parents, need to make them earn their own pocket money by doing extra work within the household, in the neighborhood, or by volunteering.
Many parents decide to pay their children extra money if they take on certain tasks in and around the house, taking care of the garden, mowing the grass and hedges, washing the car, and walking the dogs. Children need to understand that if they work hard, they will get their pocket money and increase it. However, if the children are not willing to do the work, the parents will be forced to reduce their pocket money and thus punish them in a certain way.
Let Them Find A Part-Time Job
Many children who are a little older have special expenses of their own, so they need more money and decide to look for a part-time job. There are various jobs that children can do: take care of pets, walk dogs, help the elderly in the neighborhood, babysit, sell lemonade, and sell items and art they make themselves.
Let Them Invest
Through various applications, there is an investment option within credit cards for children. Children, with their parent’s approval, can invest part of their money in well-known companies such as Google or Netflix. Here we advise you to teach them to invest in various types of industries, and not to stick to just one. When they learn how to invest on their own, they will find various companies and brands and invest their money in them.
Let Them Participate Partly In The Procurement Of Food And Necessities
Children must spend part of their pocket money or money they earn on household necessities. In addition to being able to buy certain things for themselves, they also have to bear part of the costs within the family. Here we are talking about small assistance to the family budget, and the children will feel much more useful and satisfied.
Disclaimer: The above references an opinion of the author and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice. Invest responsibly and never invest more than you can afford to lose.
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